Coach Mark here.

We are in day 4 of a powerful rotation into “everything else.” Much has been made at different times at the lack of breadth in the market in 2024 with big-cap tech leading the way and many other areas of the market not participating. This was particularly true over the last couple of months. Well, nobody is talking about that this week.

There are numerous areas of the market that had not participated in the market taking a leg up in the second quarter. RSP (equal weight), small caps (IWM), The Dow (DIA), ARKK, XBI, industrials (XLI), energy (XLE), financials (XLF)….it is a long list that I could go on and on with. The last four days you have seen massive overperformance and a relentless burst in just about everything not tech. It has been a power rotation for the history books.

During this time tech has just been hanging out. At the onset of the rotation, technology had a noticeable down day but has been drifting in the trading sessions that followed.

So, what comes next? That is always the question traders have, isn’t it? In rotations of the past the answer has always manifested itself VERY clearly through pattern development. In stretches like the last few days it feels like there will never be a down candle again. It feels like IWM will never even trade sideways again! However, one can count that there will be a pullback, high base, or other pattern that we can identify and assess our edge.

It is an exciting time and a lot of traders are enjoying it. Let’s be on the lookout for that next set of patterns so we can continue to enjoy it.

Have a fantastic Tuesday!

Chart of the Day: Gold Futures (/GC)

Gold refused to not be invited to the party over the last couple of days. A power move, gold is threatening a sustained break of all-time highs as it sets a new high-water mark today.

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